Bangkok--Aug 15--PTT
PTT Public Company Limited (PTT)’s strategic management under PTT Group of businesses; the firm’s good investment; and the rising demand and product prices help PTT and subsidiaries to report a 50% rise in revenues for the second quarter this year compared to the same period of last year.
PTT and subsidiaries’ net profits in the second quarter this year rose by 30% or Bt6.56 per share year-on-year. From the total revenue, 56% came from the share of net income from investment under equity method, and the remaining 44% came from the operation of PTT. PTT’s Gas Business Group contributes to the overall revenue by 40% and another 4% came from the Oil Business Group.
PTT expects to spend its revenues over the investment projects on alternative fuels including NGV, Gasohol, and Bio-diesel in order to ease the ongoing public’s burden and to reduce the country’s trade deficit caused by high imports of crude. In addition, PTT aims to create synergy within PTT Group of companies with a goal to step up as the leading olefins-based manufacturer in Asia.
Mr. Prasert Bunsumpun, President of PTT, revealed that PTT and subsidiaries report a continuous second quarter earning growth. Highlights are the 21% rise in overall sale figure of the gas separation plants (thanks to the full operating capacity of the Gas Separation Plant Unit 5 - Thailand’s largest gas separation plant) and the higher revenue from Rayong Refinery Company Limited (RRC) in which PTT earlier raised its stake holding from 36% to 100%. As a result, PTT and subsidiaries’ revenue stood at Bt226.29 billion, higher than the same period of last year by 50%; earning before interests, tax, depreciation and amortization (EBITDA) Bt28.33 billion, increased by 46% year-on-year; and net profits Bt18.36 billion or Bt6.56 per share, up by 30%. From the total revenue of PTT and subsidiaries, 56% came from the share of net income from investment under equity method, and the remaining 44% came from the operation of PTT. PTT’s Gas Business Group contributes to the overall revenue of PTT and subsidiaries by 40% and another 4% came from the Oil Business Group.
For the operating results in the first half of this year, PTT and subsidiaries’ revenue stood at Bt417.45 billion, higher than the same period of the previous year by 45%. EBITDA was Bt53.23 billion, rose by 43%. The net profit (exclude the extraordinary transaction caused by the debt restructuring of RRC) was Bt36.61 billion, rose by 39%, and the net profit (include the extraordinary transaction) was Bt44.35 billion, up by 68%. PTT is listed in the Stock Exchange of Thailand and has the highest market capitalization. As of August 11, 2005, PTT’s market capitalization was about Bt660 billion or 14% of the total market capitalization. Combined with the market capitalization of its subsidiaries, PTT Group will have the market capitalization as high as Bt1.2 trillion or about 26% of the total market capitalization in the Thai bourse.
As of ending second quarter this year, PTT and subsidiaries’ total assets stood at Bt480.245 billion; total liabilities was Bt268.549 billion; and shareholders’ equity was Bt211.696 billion. Its net debt to equity ratio was 0.5 : 1. Under the strong financial position, PTT has the investment plan between 2005-2009 with the total budget of more than Bt200 billion of which the major investments are on the value creation projects such as the expand of the natural gas pipeline transmission networks; the investment over the gas separation plants; and the investment over the petrochemical businesses. PTT expects to step forward to become the leading player in Asia over the petrochemical business with olefins-based. Being the top player can help the firm’s bring about its business value creation; reduces operating costs; and boost its competitiveness in the global market as well as benefit the country’s overall economy. PTT also focuses on the investment projects that help reduce import of crude which currently has a high price fluctuation. These are such as various continuous projects on alternative fuel including the projects over NGV, gasohol, and bio-diesel.
Mr. Prasert said although the oil price has continuously kept rising, demand has been increasing. Therefore, PTT’s Oil Business Group reports higher sale in the second quarter this year by 31% compared to the same period of a year ago. Thus, PTT is still the market leader in the domestic market with the market shares at 32% (excluding fuel oil sold to EGAT).
For the Gas Business Group, PTT has invested in the expansion of the gas separation plant as well as the expansion of the gas transmission pipeline networks in order to serve the market demand. As a result, PTT’s Gas Business showed higher gas sale through transmission pipelines by 8% compared to the second quarter of last year. Total sale of the gas separation plants also rose by 21%. PTT Exploration and Production Company Limited (PTTEP), a subsidiary of PTT, also showed significant improvement in its earnings; therefore, the share of net income coming into PTT also high at Bt3.563 billion.
For the Petrochemical and Refinery Business Group, the sharing of the net income from investment under equity method in the second quarter was Bt4.482 billion. And in the refinery business, RRC, which is the subsidiary PTT raised its stake to 100%, reported the second quarter’s net profit of Bt2.197 billion.
Mr. Prasert added that PTT is still a state enterprise with the shares owned by the Finance Ministry for 50% and by the state funds of about 25%. The remaining shares are owned by investors and traded in the Thai bourse. The businesses of PTT and its subsidiaries have the significant impact toward the Thai economy; therefore, PTT has been focusing on good corporate governance, efficient management system, and full monitoring and/or investigating welcome from the outside parities. PTT is positively recognized by organizations of both locally and internationally. PTT received various recognitions and awards. This year, PTT is the only Thai firm ranked on the top 500 best largest firm in the world by Fortune Global 500 in which PTT was ranked No.373, up from No.456 last year. The international credit rating agency, Moody’s Investor Service, has given an upward revision on rating of PTT to A2, a level which clearly indicate the strong financial and business position of PTT. The Forbes Magazine (issue April 2005) also ranked PTT as one of the world 2000 largest listed companies with the ranking at No.425. In addition, PTT also awarded for its transparent management. PTT was recently awarded by Finance Asia Magazine as “Best Corporate Governance” and “Best Managed Company”. And the latest, PTT received 4 awards from the SET Awards 2005 which were “Best CEO of the Year”, “Thailand Business Leader Awards 2005”, “Best Performance Awards”, and “Best Corporate Governance Report Awards”.
Mr. Prasert said the continuous growth of PTT also brings about higher earnings to the government in terms of tax and dividend. Therefore, with the privatization of PTT, the government can do more to develop the country. Moreover, amid the situation of sky-rocketing of oil prices, PTT has been playing a major role in maintaining fair prices to make sure that the customers get reasonable price. Moreover, PTT has also eased the public burden on electricity bill by reducing the price of the natural gas used as the fuel for electricity generating. At the same time, PTT sells diesel to the Fish Marketing Organization at the discount price (Bt2 per liter lower than the on-land selling price of diesel) for 7 months between April to November 2005 in order to provide support to the fisherman in 14 Southern provinces. In addition, PTT has been continuously providing many more social and environmental supports. Up to 2005, PTT provided funding support for the construction of altogether 14 school buildings and 17 school libraries. PTT is running a project to build “Sirinath Rajini Center for Mangrove Forest Studies” (located in Pranburi District, Prachuabkirikhan Province) which is the extension project after PTT has been successful with the 1-million rai reforestation project. PTT is also running the project to promote planting of vetiver grass for prevention on erosion in Kanchanaburi Province, and another project to promote knowledge sharing of Thai herbs called “Her Royal Highness Princess Sirindhorn’s Herbal Garden” Project. In addition, PTT is running a joint program on “Biodiversity Research and Training” Project with the coverage of 30,000 rais along the Thai-Burma Gas Pipeline in Thongphabhoom District, Kanchanaburi Province.
Corporate Public Relations Department
PTT Public Company Limited
August 15, 2005 End.